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tv   America Live  FOX News  April 9, 2012 1:00pm-3:00pm EDT

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in trouble after a jobs report that failed to meet even the worst forecasts from economists. welcome to "america live," everyone, i'm megyn kelly. since the news broke on friday that employers added just 120,000 jobs in march they were expecting -- they had got even 200,000 in each of the previous three months, the number crunchers have been taking a new look at our economy. that march report represents a huge drop from recent months, just half about of what we saw in february as i mentioned. we are hearing that people are working fewer hours and earning less. ironically fed reserve chair ben bernanke warned about this a couple of weeks ago. >> a wide range of indicators suggests that the job market has been improving which of course is a welcome development. still conditions remain far from normal, as shown for example by the high level of long-term unemployment and jobs and hours worked remain well below pre crisis peaks.
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we cannot be sure that the recent pace of improvement in the labor market will be sustained. megyn: joining me now is stu varney, host of varney & company on the fox business network. the white house admitted that the 120,000 jobs created was lower than it had been, it had been 200, 200 and 200 in the prior three months, it comes in at 120, lower than expected. why do we extrapolate from that and say it's terrible news for the economy, maybe it's just a blip? >> the debate has shifted. we appear to be at a turning point. it's not a question of how strong the recovery is but how weak on whether the recovery, the growth rate of the economy has slipped into reverse. it has certainly stalled, megyn. this may be the third time in three years that hopes for growth in the spring have been dashed with new numbers coming from the government. the money is not there, the jobs are not there, the people are not there. let me explain what i mean by that.
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first of all, the money is not there. if you look at the amount of money we've got to spend in our society, it's called disposable after tax income, it's not growing, it's dead flat. the money that we've got available is increasingly being diverted to higher gas prices and food prices. point number two, people are not there, they are leaving the workforce. there are fewer jobs now than there was a year ago. if all of those people were still part of the workforce the unemployment rate will be 10.9%. and lastly, the jobs are not there. the rate of growth in job creation has literally been cut in half. the money is not there, the people are not there, the jobs are not there, and the debate is, how weak is this recovery? has it gone into reverse? megyn: would you have said that prior to the march jobs report. would you have said that when we were at 200, 200, 200 each month as far as job creation as being praised as great numbers. >> i would have looked at different indicators and said
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the same thing, that this economy is in trouble. when i say the money is not there, that is extremely important, that is the money that drives our consumer economy. if it's increasingly going to higher gas and food prices that is not good for the growth of the economy. megyn: what happened to the numbers? how did we go from 200 to 120,000 jobs created? how do you explain it? >> my explanation is that we are now seeing the impact of much higher gas prices. it's taken until march to realize that a lot of our money is being diverted to the gas pump. and that is taking money out of a growing economy. that is taking money out of hiring. so you've only got 120,000 new jobs and people are discouraged by these high gas prices and leaving the labor market. so even before friday's report you had some information that things were not going that well. ben bernanke said it himself. now comes the friday jobs report and that is the real game-changer, the debate has shifted. megyn: last year we had a slump over the summer and the unemployment rate climbed back
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up if memory serves. we had a pretty decent spring, including march and april, and unemployment went up over the summer. are we likely to see something similar now? we are already seeing a slump in march. what are we likely to see, april, may, june, july? >> it all depends on the so-called discouraged workers. if they come back into the labor force looking for a job they are counted and therefore the unemployment rate may go up. it also of course depends upon the number of new jobs create. if we consider to sink around a hundred thousand a month that is nothing for an economy of this size and again you'll see the unemployment rate go up that.. that is a distinct possibility for this summer right before the election. megyn: fridays numbers showed a drop in the unemployment rate to 8.2%. they say the real number actually is 9.6% according to one republican lawmaker, that lawmaker is this guy, california
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congressman duncan hunter. he's calling for a change in how unemployment is actually measured. his legislation would require the government to include those who were no longer looking for work, the so-called discouraged workers, and the under employment. you add in those numbers and you have 22.8 million americans who are either completely out of work last month, or working less than they would like to. fox news alert on new details on videos from the lavish over the top gsa conference in las vegas now just coming to light. the scandal broke last week about the government services administration. this is the irony, this group the gsa, they are the ones -- they manage federal buildings and they are supposed to negotiate our federal contracts and keep costs down for the government when we enter into these contracts. those are the folks who went out to vegas and spent more thanl than $800,000 on one conference for 300 people.
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then a video came to light showing a rapping gsa worker bragging about spending taxpayer cash without an investigation as he put it. today we learned there are more videos, including this special entry built around the cartoon character, gumby. ♪ rapping ] megyn: and it goes on from there. there are more videos like these. and then there was the $3,000 single hotel party suite for the employees.
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look at this place, look at this. this is actually one of the loft suites, the flat sweets. there is one that is even nicer. look at that. is that where you stay when you travel on business? you paid for that loft suite, you paid for the person in it to have a $44 breakfast. you paid for one of his coworkers to get a tuxedo rental. you paid for a commemorative coin placed in a very well set box for every single person that showed up there. you paid for t-shirts and vests because they wanted to wear special vestses some of them. you're supposed to be paying $71 a day for all, breakfast, lunch and dinner, just breakfast cost $44 for these folks. you paid for it, you. that's why the head of gsa martha johnson was forced to resign just hours before the inspector general released his report detailing this spending. look at this. the obama administration has criticized the spending as well and the videos, but now it is
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suggesting that in fact the real blame belongs with the bush administration. later this hour the former gsa administrator under president george w. bush will join us live. dramatic new details on the breaking news story that unfolded live on this program on friday. a navy fighter jet shraplg into an apartment complex in virginia beach. the pilots successfully ejecting from the plane following a, quote, catastrophic malfunction. incredibly no one was killed or seriously injured in what some are now crediting to an amazing combination of luck and skill. trace gallagher has more. >> reporter: now we're learning that catastrophic mechanical failure, megyn apparently happened shortly after that f-a-18 hornet took off and the pilots as they got airborne tried to push around and try to go back to the airport, but they ran out of critical things, altitude and time. they dumped all the fuel before they ejected from the plane
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avoiding what could have been a bigger catastrophe and then they waited until the very last second before ejecting. one of the pilots was actually found still strapped into his seat. look at the flames. you look at this and you can see why they called this the good friday miracle, we are talking about five buildings, 40 apartments done, destroyed, not a single fatality. take a look now if you will at the building, this is the fair view, or the may tpaour mus mayfair muse apartment building. look at it afterwards. this thing was wiped out. the credit for no fatalities goes to the pilots and the residents, listen. >> it was citizens that tkr-gd our air crew tdragged our air crew to safety out of the fire zone. it was citizens who stepped up and moved the hoses. it was citizens who evacuated the other inhabitants of the apartment complexes and got that
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going and saved them from the fires that went through those buildings. >> reporter: now you have the navy and fire investigators now sifting through the rubble trying to piece this crash back together. a big tern now i concern is about the health of the residents in the area you had the toxic fumes, the jet fuel, the carbon fibers that can irritate lungs and skin. the military is compensating the sreuplts $2,300 for thos victims, $2,300 who are single residents and more for families that are out of their apartments. they are looking for the black boxes and the flight data recorder. they have something even better, the pilots, who are both still alive and they can give investigators a detail by detail explanation of what went wrong. >> the first thing out of one of the pilot's mouth was, i'm sorry
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i damaged your apartment building as he's hanging from his seat. trace, thank you. $500million to help enforce the healthcare law going to the irs in what republicans are calling -- from what republicans are calling a slush fund. so what are they using that money to do? we'll have lou dobbs next. and the love between a teacher and his 18-year-old former student has apparently fizzled out. so will she kiss and tell now and possibly send him to jail? it seemed unlikely when they were together. could the story be changing now in today's "kelly's court"? we have more embarrassing videos from the over the top, as they were told to make it over the top gsa conference in las vegas. take a look at this one featuring the angry office clown. there he is. waving wads of cash and smashing off his equipment, all paid for by the taxpayer. the obama administration says in fact we should be blaming president bush for all of this. the former head of the gsa under
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president bush joins us live to respond. >> i think meetings are good to have in between breaks. [laughter] i walk around and make sure everybody else is working so i don't have to do a thing. >> whatever it takes. ♪ [ male announcer ] help brazil reduce its overall reliance on foreign imports with the launch of the country's largest petrochemical operation. ♪ when emerson takes up the challenge, "it's never been done before" simply bemes consider it solved. emerson.
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i can get a smartphone with verizon 4g lte ? it'd be so easy to check facebook, send emails. and the screen is easier to read in sunlight ! the universe is practically telling me to get a smartphone.
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it's like, "lisa, 'd be super cool if you got a smartphone. also, i like your outfit." thanks universe, let's get me a lucid. come in and say hellto your new, easy to use smartphone. the lucid by lg for only $79.99. verizon. megyn: news today that the white house is pumping an extra $500 million to the irs to help it implement the healthcare law, or more specifically the mandate piece of the healthcare law. the irs is in charge of several key parts of the law, including enforcing the individual mandate, meaning if you don't pay it guess who comes after
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you? not just that, they have to make sure that low-income folks get the credit that they deserve under the law. of course that mandate is under review right now by the u.s. supreme court and it could be getting thrown out all together, so that begs the question, what exactly are they going to do with that $500 million if the individual mandate gets thrown out? we're putting that question to lou dobbs, host of lou dobbs tonight on fox business network, also a syndicated radio host. all right, lou, the -- the department of human services -- health and services gets a billion dollars from president obama. >> right. megyn: the mandate is, do with it as you see fit. >> absolutely. megyn: they saw fit to give half of it to the irs. they are hiring a bunch of new agents to enforce the individual mandate. we're going to find out in june whether the individual mandate is constitutional or not. why can't they just wait until then before they spend half a billion dollars of the taxpayer money? what if it's not constitutional and there is nothing to
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enforce. >> you've forgotten the newest obama administration slogan, we can't wait. they are moving ahead irrespective. megyn: they really mean that. >> in this one instance they do at least. moving ahead like this is irresponsible, it's truly silly. the internal revenue service, as you know, will have to add over 16,000 agents just to enforce the mandate and all the other aspects of obamacare. this is an extraordinary enforcement requirement for what is a law aimed at patient care. it's the farthest thing from it. megyn: they have to make us pay, when they say mandate they mean mandate. >> yes, ma'am. megyn: it's not much of a mandate if there isn't an enforcer. >> there is no enforcer it appears for hss because they are taking what the republicans call a billion dollar slush fund, carving off first 200 million which they've already given the internal revenue service. megyn: hss gives is to the irs.
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>> another 300,000. megyn: 300 million. >> 300 million, and the purpose of that of course is to make it easier to give away the money that is yet to come. megyn: here is what concerns me about the hhs, they were given a billion dollar implementation fund for the healthcare law. hss has to do a lot. they are supposed to set up this whole state-by-state insurance exchange that people are going to get coverage from if they don't have employers coverage. they just gave away half of their money. >> well half of a billion is ream i not much. megyn: is hss going to be able to do everything it's supposed to do for the $500 million. >> no, nor was there any intent that they would be able to. we have seen the price of obamacare rise first from the $940 billion, the original law that was passed, that was the original projection, then it rose above a trillion dollars, then according to the congressional budget office that revised it less than two months ago to $1.79 trillion.
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now the senate budget committee has already revised it. now everyone should remember, this law hasn't gone into effect. megyn: the senate budget committee has already pushed the cost up again? >> to $2.6 trillion. megyn: that is a committee run by democrats. >> that's a committee run by democrats, and the analysis is by the republican staff, but it is unrebutted, and unrefuted. megyn: you mentioned -- it does seem if we're spending $500 million of the taxpayers money we should find out whether the mandate is constitutional. they are not going to. >> it's not to the mandate, it's to the i shall rs to assure that tax credits move to low-income people under obamacare for their coverage. megyn: this is to hire new agents, right? no? >> that's a separate issue. they are bringing in another 4,000 agents as part of the 16,000 they were estimated to need as an enforcement aspect.
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megyn: they are going to need this money to be at the irs whether the mandate is struck down or upheld by the supreme court, this is legit? >> the word legit has to be stretched when we are talking about a law that was enacted two years ago, tripled in cost and has yet to go into effect. megyn: lou dobbs, thank you sir. the waitress brought out the right order but delivered it to the wrong order. this time when the punches and the drinks were done being thrown one diner ended up with felony charges. trace has the wild night at red lobster. who hasn't been there. we've seen president obama's re-election team test drive a dozen khroeg ands thi slogans this week but none seem to last. >> we are trying to find the next breakthrough in clean tph*rg.
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or we can fight for an economy that work for everybody, an economy that is built to last. >> or we can build an economy that is built to last. all right, let's decide what to do about medicare and social security... security. that's what matters to me... me? i've been paying in all these years... years washington's been talking at us, but they never really listen... listen...it's not just some line item on a budget; it's what i'll have to live on... i live on branson street, and i have something to say...
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[ male announcer ] aarp is bringing the conversation on medicare and social security out from behind closed doors in washington. because you've earned a say.
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megyn: it happens every day, you go to a red lobster and wind up facing felony charges. a 20-year-old woman is charged with two felonies after the lobster fest went south at the local red lobster restaurant. the entire brawl captured on cellphone video. witnesses say the woman and her friends hrupbld at the waitress after she committed the crime of serving them the wrong meal. trace, who hasn't been there. >> reporter: i was just reading one of the red lobster's slogan,
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life on land is dry, share the love. no love here. this happened in southeastern illinois. four women went into a red lobster, they were served the wrong meal. they began verbally attacking the waitress but they eight the meal, right? they eight the people anthey ate the meal, that's when this started. you can see the table in the upper right hand corner, that is one of the waitressess. you see them throw the waitress down on the table. the bartender gets up on top of the bar. people are trying to pull others apart. the customers are shocked. they got on top of the waitress, pummeling her and punching her in the face. she had swollen eyes and cuts to her face. and they walked out of the restaurant. this happened back in december and police have just now identified three of the four women involved, and there are charges being brought against one of them. police say there will be more
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charges brought, but, yeah it looks out of something out of gun smoke, a bar fight when the bartender jumps up. the table they threw the wait stes on were full of customers eating their people. they find of cleared it off and they got on top of her and began punching her in the face. police say they haven't arrested these women yet because they still haven't located them, but they believe that more charges will be filed against the other women at the table. megyn: they will locate them. i've had some bad dining experiences, just like all of us have, and i never resorted to blows. i do recall an incident with my sister, where she had chicken salad and she said to the waitress, something is wrong with this chicken salad and the waitress reached down and picked up a piece of the chicken and ate it and said, there is nothing wrong with this. [laughter] megyn: thank you for that. >> reporter: it didn't go to blows. megyn: thank you for that, why don't you have it now. we kept it classy, san diego.
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feel free to share your disgusting dining experiences with us. we have epic new videos from government employees who blew more than 3 quarters of a million dollars on a convention for 300 people. commemorative coins in velvet boxes, you pay for it. this mocumentary message features the smashing of office equipment. wait until we show you what these well paid federal workers were singing. what were they singing about when it came to spending your money? and millions of his paintings and prints hang in homes around the world, so what is the story behind thomas kincade's sunday death on friday? trace investigates. first it was winning the future, then it was an america built to last. then it was, we can't wait. the obama campaign seems to be struggling to find a campaign message that sticks. we'll debate whether this
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signals bigger problems down the road. >> it's not a strategy for us running the future. >> we can't wait, we can't wait until gas has skyrocketed more. or are we better off when everyone gets a fair shot and everyone does their fair share? [ horn honks ] hey, it's sandra -- from accounting. peter. i can see that you're busy... but you were gonna help us crunch the numbers for accounts receivable today. i mean i know that this is important. well, both are important. let's be clear. they are but this is important too. [ man ] the receivables. [ male announcer ] michelin knows it's better for xerox to help manage their finance processing. so they can focus on keeping the world moving. with xerox, you're ready for real business. for a hot dog cart. myher
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megyn: tracking a couple of developing stories for you this
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hour, including an investigation into a massive five alarm fire that killed two firefighters in philadelphia. two entire city blocks were destroyed and hundreds of home had to be evacuated overnight. there is a new study getting attention today for claims -- that claims that autism in children may be connected to obesity during pregnancy. researchers say the results are not definitive but offer mothers another incentive to maintain a healthy weight. 2012 already a record-breaking year for heat, 8 degrees warmer than normal for the month of march nationwide. april practice ham lincoln told voters they should not swap horses in midstream. ronald reagan says it's morning again in america. and bill clinton proclaimed, it's the economy, stupid. presidential campaign slogans are almost as important as the election itself say the pundits. today there are new questions about president obama's own
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re-election campaign and its apparent lack of a central message. the obama team test driving a few slogans it appears but none of them sticking quite like 2008's change we can believe in. >> it'middle class families have been working two and three shifts. we will be making key investments in places like education, and science and technology, research and development that the american people understand is required to win the future. we can't wait, we can't wait until gas has skyrocketed more and people are desperate, we need to start making those investments now. and america built to last is one where we are supporting scientists and researchers trying to find the next breakthrough in clean energy. or we can fight for an economy that works for everybody. [applause] >> an economy that is built to
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last. or we can build an economy that is built for last. or are we better off when everyone gets a fair shot and everyone does their fair share. megyn: joining me now to discuss it brad blakeman former deputy assistant to george w. bush. and dick harpootlian. bruce new man says of barack obama he's all over the place. and they talk about how this is the branding of the whole campaign, and he appears to be missing it after having taken several shots. the campaign claims those weren't attempted campaign messages, those were just sort of messages on random political items. what do you make of it, brad? >> when a president uses terms over and over and over again he is testing to see if any of the sewing ands are carrying any weight with the people he's speaking to and beyond that the american people. he is struggling to find the kind of message he had in 2008
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which resonated quite well, hope and change was very popular. if the president was successful in delivering hope and change he would have continued that slogan and improved on it. the fact that he can't find a footing where americans can say, this is what barack obama stood for, this is what why i like him. it shows it's an a business malrecord that he has and can't define it to the american people. megyn: we talked about abe lincoln, don't change horses in midstream. bill clinton on his first election bid, it's the economy, stupid. this famous one from ronald reagan which folks on both sides ever the aisle thought was politically smart. remember this. >> it's morning again in america. today more men and women will go to work than ever before in our coun country's history. megyn: very hopeful. look at the dad getting in the family vehicle. does barack obama need something like this. and to borrow his own phrase, can he wait for it?
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>> well, i think that barack obama doesn't need any message, except the message which covers generally everything he's talked about, which is don't screw it up, vote to reelect the president, or you can take bill clinton's -- it's the economy stupid and change it a little bit in talking about mitt romney, it's the stupid, stupid. you really don't want to make the message that it's morning in america. we are pulling back from the precipice of economic and financial disaster that george w. bush left us in. after three years we've had 20-something straight months of job growth. the unemployment numbers have dipped to levels we haven't seen in three years. we are headed in the right direction. these guys want to -- the republicans, mitt romney wants to tell us, go back to those policies of george w. bush, of no regulation, of letting the people on wall street run the economy, of letting billionaires pay less in taxes than a waitress does, that is not where
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this country needs to go and this president has articulated that and a catchy phrase will not change that mitt romney is going back to the past, and barack obama is the future. megyn: you need something. every campaign has a little sewing and and it needs to be kind of pithy, pithier than that. >> i can be pithy. i can be pithy. i can be real pithy. but i don't think you want that on the air. megyn: i know your history. >> i have a pithy one for dick. it could be worse. it could be worse is really the slogan that dick just articulated. again he blames bush. the american people -- it's over, dick, there is no bush to blame. the fact this president doesn't have a record he can build on with his very successful slogan of hope and change in 2008 shows how pitiful that the american people can't parrot back the things they like about president obama today based on what they voted for in 2008.
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maybe hopeless is a better slogan for this president after his service. megyn: he's not going to go with it could be worse. the president has been giving a message of sort of we've made some progress but there is more work to be done. like some pig from charlotte's web, some progress. but people -- that doesn't inspire people. it reminds me of the oklahoma state motto, with all due respect to our friends in oklahoma, we're okay. i don't know it just doesn't -- it's like new york, the empire state. empire. we're okay. you need something, don't you? >> well you could do missouri, show me mitt romney that you're not the j bears for tipton of american politics that you're so out of touch with the american people that your wife drives two cadillacs at the same time. >> it's all about obama. >> it's a choice between mitt romney and barack obama, that's what is going to happen in november. when people go in there slogans are not going to matter. you don't want to go back to the
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disastrous policies of brad and his boss and put this country in the ditch. >> that was my fault. megyn: i knew he'd get to that eventually. >> by the way, brad you will agree with me on this. both of us were in the studio last week, megyn and what happened you left. sent in a substitute host, and brad and i talked about how we felt really dissed over that, right, brad. >> not at all. she deserves a day off. megyn: they can't even agree on that. >> eddie haskell. he's so eddie hsskell. megyn: thank you both for being here. keep working on it. pitier. i told janice dean, she is janice dean the weather machine. her married name is new man. i said you should change it to janice new man, weather woman. she decided to stick with janice dean the weather machine. go figure. coming up the obama
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administration is pushing to bailout 11 million homeowners who owe than their houses are worth. that includes people who can afford their payments. we'll show you who wins and loses in this deal. look at this sweet layout. look at this. 2400 feet of drop-dead gorgeous hotel suites. now -- not for a saudi prince or the ceo of ibm, but government workers whose bill you paid. up next more on those workers and why they were saying in staying in a conference room most of us could only dream of. ♪ rapping ] this is an rc robotic cw.
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i can get a smartphone with verizon 4g lte ? it'd be so easy to check facebook, send emails. and the screen is easier to read in sunlight ! the universe is practically telling me to get a smartphone. it's like, "lisa, 'd be super cool if you got a smartphone. also, i like your outfit." thanks universe, let's get me a lucid. come in and say hellto your new, easy to use smartphone. the lucid by lg for only $79.99. verizon. megyn: new developments today with the scandal that broke last week about the government services administration's conference in vegas. this is a group that should be bargaining on federal contracts
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to deep the cost down. they held a conference for some of their employees, 300 out ph vegas that cost the taxpayers more than $800,000 for 300 federal workers to have a good time from the look of it. we are getting a look at some of that good time through morey dick lust mocking videos, including this one with the angry office clown. >> you know, the takes a lot of energy to get through the entire conference call without getting a smoke. >> hey we are trying to call you on the conference call at 9:00am. >> whatever. >> come on. >> whatever. megyn: you get the picture. well it should be taxpayers who are angry, you're the ones paying for that. later on the clown says, government, if you think the problems we create are bad just wait until you see our solutions. the obama administration has come out and criticized these
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videos and the shocking spending but now is suggesting that we look to the bush administration if we really want to lay the appropriate blame here. the gsa administrator under george w bush is here with me. thank you so much for being here. >> glad to be here megyn. megyn: if bush administration folks had acted under their watch the obama administration says the 2010 debacle could have been eye voided. avoided. they say it's the bush administration to blame. they say in 04 the conference was $93,000. in 2006 it had ballooned to $323,000. and then two years later it was up more than double, well about, yeah, more than double, just
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655,000 leading us to 2010 where it was up to $840,000. they say most of that ballooning happened under george w. bush, not under barack obama, your thoughts. >> first of all it's so clear that the obama administration is in crisis mode. so where to begin. first, i question the numbers, and i'd love to see a line item break down of what is in each of these numbers. i'm not going to distrust them out the gate. secondly looking at the location ever the conference it looks like they've confused what is a local regional conference with conferences which were nationwide which had more than 300 people at them. some of them had several thousand -fs people at them. i think they are comparing apples to oranges. what i think you see really is once again the obama administration attempt to divert attention from these troubling videos, because when you look at the videos, some of them talk about things like ba61. ba54. and the average american may not be a sraeur of this. but these are categories of budget authorities. these are budget-spending
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allocation line items that cover renovations, building projects, infrastructure, sustainability, stimulus spending, and to hear gsa employees, or any federal government employee making a joke about wasting taxpayer money at a time when we have so many americans who are out of work is a real travesty. megyn: i want to get -- listen, you had troubles when you were running this agency as well that were well publicized. gretchen carlson asked you about them on fox & friends, that video is posted online. >> i do want to say one thing. the investigator who made the allegations against me actually pleaded guilty to making falls statements tmaking false statements to congress. it's a little bit different. megyn: it seems the obama administration is pointing to you and other gsa add minimum straeulters under president bush because they want to talk about th the ballooning costs of the conferences. i want to talk about the
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conference under obama. 300 employees get together, it's one region. average breakfast for the employees out there, this is each federal employee $44. who spends $44 on breakfast when you're traveling on a company dime. they rented tuxedos on our dime to the tune of $400. we had to pay for that? think about you and your family. there are 22 million americans who are either under employed or unemployed right now who are paying for these people to dress up in tuxedos. one inch room party almost a grand, another inch room party almost 2 grand, another inch room party almost 3 ground. they wanted everybody to get a yearbook of their little trip. that cost the taxpayers $8,100. can teens, commemorative can teens, almost $3,000 in taxpayer money. coins for staff in velvet boxes, we had to have them in velvet boxes. $6,300. some of the managers wanted a little sweater vest so we had to
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pay 2 grand for that. not just that but whether they went out to scout the trip in vegas not only did they scout at the m hotel which provided them with these two suites, two story lofts. they had to stay at the ritz-carlton because they considered having the whole event out there. my head is about to explode. you tell me how this happens. >> so is mine. none of these costs are justifiable. this is way out of control. this is not what gsa is about. it's about saving the american taxpayers money and getting the very best bargain on behalf of the american people. for obama to try to blame this poor management and poor leadership on the bush administration is a bottom tphabl, houtrageous. he should be so ashamed of himself. megyn: what can be done. >> gsa has abused the trust of the american people. they will have to earn it back. in business you say what is monitored and measured is
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managed. and i think that's what's going to have to happen, there is going to have to be a lot closer watch on the expenditures at usa. megyn: do you blame the workers, the managers or both. >> i blame both. we are all adults and each of us has to take responsibility for our actions, but my heart breaks to think that at this agency we could have gsa employees who are making jokes about wasting building funds and then have managers approving these videos and even giving awards for making these kinds of negative morale, demoralizing videos. it's heart brakin breaking newsing fobreakingheartbreaking for the american people. megyn: he was known as the painter of light. thomas kincade is dead at 54. no cause was given. an autopsy is scheduled. what is the story behind his sudden death? trace investigates after the break. [ kate ] most women may not be properly absorbing
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megyn: the sudden death of artist thomas kin kaeurbgsd selfproclaimed painter of light passed away on friday at his home in san francisco, just 54 years old. his family saying he died of natural causes. today an autopsy is underway to determine exactly what killed the popular artist. trace gallagher has more live from l.a. trace. >> reporter: megyn, we just talked to the county coroner, they are saying it's going to be 12 to 16 weeks p-f the before they release the official cause of death on thomas kincade and say they won't comment on the case until it's concluded. and the local police are converting all calls to the county coroner. thomas kincade sold millions and millions of paintings for hundreds of millions of dollars
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an also had plenty of personal and business struggles, he was locked in legal battles with the owners of his kincade galleries. you see one right there. they claimed that thomas kincade who traded very heavily on his christian beliefs was driving their businesses into financial ruin. you mentioned that he battled alcohol abuse back in 2010, his mugshot for drunk driving literally went ruler all over the internet, and for the past year, a little over a year, he's actually been separated from his wife, living in the same area. thomas kincade is survived by his four daughters and his wife, megyn, and still no official cause of death. 54 years old. megyn: wow, trace, thank you. election watchers say it is now inevitable that a combination of good luck and savvy strategy will deliver the republican nomination straight to mitt romney. so what is next for his campaign and for the general election?
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also, a teenager has now dumped her boyfriend who was also her teacher at one time after allegations surface he sexually abused another student. is this guy now going to wind up behind bars? "kelly's court" takes up the case. and new pressure from the obama administration for billions of dollars to bailout homeowners who can afford their mortgage payments. really? ♪ our house in the middle of our street. our house in the middle of our street. ♪ ♪ are you receiving a payout from a legal settlement or annuity over 10 or even 20 years? call imperial structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today.
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megyn: a critical moment in the gop nomination. the polls show this may be all
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but over. it's not official. but after mitt romney spent a relaxing issue on the beach, it looks like he may be coming in on top. his other rivals may be throwing in the toil. >> you have to be realistic. given the size of his organization and the number of primaries he has won. if he gets to the 1,044 delegates i'll support him. the latest real clear politics average putting him 9.7 points ahead of his next nearest rival rick santorum.
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what is next for romney's campaign in at what pointing they or should they focus on the general election? chris stirewalt is here. is this premature? >> i don't think so. it sort of crystallized. when you look back over the arc of this campaign. he won all the races he was supposed to win. he raised all the money he needed, and when you see he has done as well as has done. rick santorum did way better than anybody including me thought he could or would. he definitely outperformed. but with this big a gap in delegates it will be hard for him to press on and romney is
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entering the come sport zone. megyn: at this point who cares, it's about delegates. the rest for delegates is what is needing so many people to say it's romneys to lose. what does he do at this point? technically he hasn't secured the gop nomination? so what does he do? >> he has been fortunate because he has been able to campaign against rick santorum but be focused against president obama. he has been able to not talk about his rivals, not deal with them. and really focus on the president and do some good general election campaigning. now there is a gap and there isn't another primary until april 24. that means romney has to decide what he's doing. is he just going to focus on obama or is he going to give his leading rival a chance 0 get out of this race. but remember we saw the sign
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this morning that the santorum campaign hitting romney on energy exploration is not showing signs they want to bring this to a friendly conclusion that there might be some fight left in the former senator. megyn: what a shift in gingrich's tone. he has been resolute in recent weeks compared to what we heard on "fox news sunday." >> he rightly identifies florida as that moment where he almost had it. he won in south carolina. he was rolling into florida. he says he got sucked into conventional politics. but he went negative against mitt romney. looking back with wisdom, he says i diluted my brand, i did
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it the wrong way pap that takes a grownup person to do that. megyn: in amassing the proper number of delegates. rick santorum has an uphill battle when it comes to amassing the proper number of delegates. dots pressure build on him to not push for a brokered convention? >> the pressure build on him. but the more dangerous moment is the day it ceases to be important. it's important that he gets out of this race in a way that he gives honor and credit to his run. he's got to time this right and do it the right way. megyn: we heard the president taking aim at mitt romney, understanding the politics look like he will be the nominee. chris stirewalt, thank you. coming up, a look at why mitt romney's chief rival is home with his family today.
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his daughter bella's fight for survival has taken rick santorum off the campaign trail for the second time in two weeks. it's been 3 plus years since senate democrats have taken a vote on one of the president's budget proposals. but that could soon change. jim angle is live in washington with more. >> about the last thing senate democrats want to do in an election year is vote on an obama budget with tax increased. but aer avoiding it for three years their hand may be forced. >> if you are voting on a budge net the senate you are going to vote on tax increases. but in an election seat it's tough to take. >> they don't want their fingerprints on a plan.
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>> the democratic chairman of the senate budget committee argues little progress can be made in an election year and harry reid could avoid a vote because it would have taken 60 votes to bring a budget to the floor. the par limb -- but the marley men tearan has ruled it only takes 50 votes, not 60. >> the parliamentarian can't force them to do it but she said you have to do it. >> reporter: so they could force own embarrassing vote on the president's budget. the last time it came up in the senate in 2009 it lost 97-0. senator conrad says he plans to introduce a budget of his own.
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but he recommends the president accept the recommend cases of his own -- the recommendations of his own budget commission the bowles-simpson. >> you need to make the case for why it's necessary. >> reporter: the president did not and now faces the prospect that both houses of congress will vote his budget down without a single vote in favor. megyn: new fallout in the nuclear standoff with north korea. that country is preparing to launch a new long-range rocket. powerful enough to reach the united states. north korea claims it will carry a weather satellite into orbit but the u.s. and others not buying that. >> it looks like all systems are go for the launch as early as thursday north korean time.
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it is just a civilian peaceful satellite launch for the u.s. and others say it's a warmup. it has as you noted a range of 4,000 miles putting it in striking distance of the united states. countries like japan and south korea said they would shoot the rocket down if their territory were threatened. north korea said that would be an act of war. north korea says it has enough nuclear material to make a half does bombs. south korean officials are saying they are seeing signs of nuclear activity where tests have been conducted in the past. all this comes around the time of this weekend's 100th anniversary of the north korean
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founder. megyn: the united states outlined wait calls the final conditions for iran's nuclear program with the big meeting now four days away will iran fold or will america? joining us next, former u.n. ambassador john bolton on a critical moment this showdown. a married 41-year-old leaves his family to move in with a teenaged former student. not you lover is gone. is the courthouse next for this former teacher? that's in today's "kelly's court." millions of americans struggle to pay mayor mortgages every month. now the obama administration is floating a plan that will have millions of folks paying for their neighbor's mort ages, too, we'll so you who wins and who loses. ♪
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megyn: a fox news alert on a new turn into the investigation into the death of trayvon martin. the state attorney and special prosecutor says this will not be necessary. the grand jury only would have been required if they wanted to pursue first degree murder charges against george zimmerman which no one has suggested would be appropriate here. second degree was the most stringent charge he could face. that can be brought by the prosecutor without a grand jury. he maintained that he acted in self-defense. angela cory says her latest decision should not be considered a factor in the case's final determination what to do.
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we are close to a key moment in the showdown with iran. the u.s. outlined what they call the final demand. among most those demands that iran shut down the fordo facility. will iran fold to what some have considering tough demands or will the u.s. be forced to change its position. joining me noise former ambassador john bolton. what hannes friday. >> it depends on how iran decides to handle this investigation. the the five permanent members of the security council? germany. and iran. those are the people around the table. iran has been able to drag out past negotiations and play for time and talk about deals and
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never agreeing to anything. that bought it time to make progress on its nuclear program. if i were advicing iran that's what i would do. they have floated in the past couple days quote-unquote compromises that could have the effect of keeping these negotiations going. megyn: we want to appear as though we are trying to avoid a showdown if not between us and iran, then between israel and iran. but the question is whether anything meaningful can be accomplished. >> if you define that as rolling back the nuclear program. the longer the negotiations go on the greater the chances are that iran will cross the finish line. this is a mistake believing in the negotiations for the sake of
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negotiations. the iranians have cleaned our clock in this process before and they will try to do it again. megyn: they are those who are concerned that the president will keep the more gaigs going through the fall. >> i think they are worried about that. from the administration's point of. >> . dmitry, give me a little slack after the election i'll be more flexible. megyn: there is daylight on this issue because israel according to reports is considering bombing iran and the time frame had been placed in the spring because they wanted to shut count nuclear program at a certain point. they can't wait until november according to what we heard. is that true?
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>> that was defense secretary panetta's prediction of when the israelis might strike and i don't think it's accurate. they have been involved in leaks. they said we have 6 months notice before iran got nuclear weapons. it used to be 2 to 3 years, then one year and now they are down to 6 months. from israel's point of view missing by one day can be catastrophic. if they attack after iran has a nuclear weapon iran could retaliate with that nuclear weapon. i think the typing is close. they will watch this negotiations. if they think iran is playing for time and stringing this out. i don't think they are prepared to wait very long. megyn: if they do see these stringing out, you know iran is going to drag its feet, and keep
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people dangling and not knowing how it's going to resolve. israel is watching its watch. but you tell me, can it go off iran and bomb iran when we are in the midst of these meetings? >> if they felt they had no other oipghts wouldn't slow them down in the slightest. you can hear from the state department and the europeans will say. we are make progress. you don't want to disrupt the process. that's why the iranians have been so successful in the past. it's possible they will come in friday and say we are not negotiating anything. i don't think that's the likely approach. that's not in their best interest. about it's possible. in that case i think israel can say we told you so. megyn: i know they say they will do it without us. don't they need us in our support and would we be prepared to give it if we were in the midst of these negotiations with iran? how would that look to the
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american people? >> the obama administration is not going to do anything to help israel and certainly israel would prefer the united states take this action, we have greater capabilities. but they have not hesitated in the past to act with or without our approval or knowledge as when they attacked the reactor in 1991. i wouldn't handle it the way the obama administration is handling it saying we can live with the even riched our crane yum for the facility. it's saying these people are weak. they want a deal, they are worried about the consequences if they don't get a deal. it's like throwing the fishing line into the water and pulling the united states in.
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megyn: he threatened to sue to get rid of a nativity scene in his hometown last winter. then he became sick. local christians came together to raise funds for him and his wife. now, you won't believe the inspiring way this story has gone. rick santorum taking a break from the campaign to be with his ailing daughter. the campaign just announced a new turn in the emotional story of little bella santorum. >> we were not going to let her go. we understand her life will be different than our other children. we felt we owed her the opportunity, the chance to do as well as she could. [ male announcer ] how do you trade? with scottrader streaming quotes, any way you want. fully customize it for your trading process -- from thought to trade, on every screen.
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megyn: two men are accused of shooting three people and terrorizing tulsa's african-american community. a judge setting bond at $9 million each. the men are accused of killing three people and critically injuring two others. online postings suggest one of the suspects may have been trying to avenge his father's death. >> our youngest daughter isabella maria, our youngest daughter needs a lot of care. when she was born we knew something was wrong but we didn't know what it was. they came back and told us that
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she had anne a disorder similar to down's syndrome. that's from a video of rick santorum on his campaign web site. he's talking about his daughter bella and her rare genetic condition. this condition caused bella to be hospitalized friday. the campaign released a statement saying bella may leave the hospital sometime today or tonight. this is the second time in the last few months senator santorum has left the campaign trail to be with his young daughter. >> reporter: he has been off the campaign trail for four days. but he says he will go back on tomorrow. very encouraging, the news coming out of the campaign saying bella could be released asle early as tonight. we don't know why she was sent to the hospital friday. we do know she suffers from
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trisomy 18. it's similar to down's syndrome. it usually prove to be a fatal disease. santorum previously said it's gut wrenching for him to campaign with his daughter like this but he says here i am because i feel like i wouldn't be a good dad if i wasn't fighting for a country that would see the dignity in her and every other child. she was admitted to the hospital back in january with pneumonia in both lungs. mitt romney has also issues a statement on his twitter account saying praying for a quick recovery for bella. rick santorum and karen santorum have six other children along with bella. santorum acknowledged that he needs to win pennsylvania to
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keep his momentum up. if you look at the real clear politics average of polls, this thing is really a dead heat. santorum with the slightest of leads going into that april 24 primary. megyn: a may-december relationship between a one-time teacher and his former student got national attention when he left his wife and children to move in with her. now it's over. the big question is this, will she change her story and help send him to the slammer? is that even possible? we'll take it up in today's "kelly's court." the obama administration throwing its weight against a housing bailout potentially costing taxpayers billions of dollars. we'll show you who gets the payout and wait may cost you after the break.
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principal owed on the loans. but it could cost taxpayers billions of dollars. peter barnes is tracking this story. he's going to walk us through the proposal. >> the government regulator of fannie and freddie is expected to announce that the mortgage giants will allow limited principal deductions to some homeowners to give them a break on their monthly payment but it looks like this will be backed by the taxpayers. edward demarco has resisted allowing debt forgiveness to limit taxpayer billouts. they have gotten $180 billion so far. but tomorrow in a speech he is likely to announce he will let fannie and freddie participate in a treasury department program
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funded by $20 billion in taxpayer bailout money left over from the tarp program. they could make more money if the under water homeowner avoids bankruptcy. but lower interest payments before allowing fannie and freddie customers to qualify for debt forgiveness so homeowners who are making their payments don't stop paying just to get in on this new deal. >> i think when you put those constraints on it you will find that very few borrowers will actually qualify. so why go ahead with a program that may be modest in scope? i think this will reduce the political pressure for action enormously. >> reporter: he expects maybe tens of thousands out of millions of fannie and freddie
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borrowers will be able to participate in this debt forgiveness program because of these tight restrictions. megyn: joining me to discuss it melissa francis. and also former communications director for jon corzine. simon constable. it's almost like healthcare. your home and mortgage issues affect people at the core. moral hazard is what we talk about. if you are under water and you take a second job to pay your mortgage and you don't, why should she bail you out with her taxpayer dollars. >> this goes back to 2008 when we bailed out the big banks and the argument was this is necessary to stabilize the larger economy. but if you follow that premise
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through to its logical conclusion, people being able to pay their mortgages, if her house is paid off and mine isn't and i get evicted, her property value goes down, too. that affects a range of issues that have everything to do with the larger economy and not the small issue of moral hazard. it's affecting not just me, but my neighbors, the community and so on and so forth. megyn: does that make you feel better if you are working a second job to pay your mortgage. your second job pays your mortgage and hers as well. >> the problem is this was the problem when there was the original bailout. moral hazard is always the problem when a government program.
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the problem is the taxpayer is on the hook either way. these mortgages are backed by fanny and freddy, that's us. megyn: three out of four people who have an under water mortgage are current. they are making their payments. >> we don't have the details on who will qualify. as we heard the report it sounds like no one will qualify. they say there will be a need base to it. you demonstrated a terrible hardship and that's why you need the break on your mortgage. but it's parsing the details. who should qualify, who gets the break and who doesn't. megyn: people who are paying say and who have money say just because i'm paying and i have money i shouldn't be penalized. but pay for the people who aren't paying. >> i think we should get out of
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the bailout business completely. government involvement in the housing market is what has been the problem with all this. >> they say if we don't turn that around we don't turn the rest of the economy around. >> if they do nothing, then we'll see entrepreneurs and speculators come in and snap up the house and rent them out. that will happen. it won't be a vacuum. if the government does nothing. the government does haven't to do everything for us. megyn: this guy who oversees fannie and freddy says we are not doing its. we are going to saddle the taxpayers with this bill and it's not fair. so now they made him an offer he can't refuse by saying we'll take the leftover tarp funds. we'll give that to the fannie and freddie. there is so a peel in that
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because main street is saying we used that money to bail out wall street which was at the heart of the mortgage meltdown. >> i don't believe fannie and freddie were the problem. it originally originated with larger banks. people were also having -- bankers are peddling these very, very, very sketchy mortgages to them. the bottom line is if you are going to look at the larger banks, then, yes, that's a separate issue. megyn: the thing about the banks is they paid us back. are fannie and freddie mortgage
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pairs going to pay us back. >> if you are not evicted out of your house, you don't have neighborhood blight. it's part of a larger economy. >> why is it not acceptable to accept there are speculators and people with money who would go fan buy up houses and rent them to people who are evicted and why can't we accept that the free market might actually work? >> you have places in florida and nevada where you have neighborhoods that are blighted. >> the argument -- foreclosure -- prices would reset at a lower level. how about new couples who can finally afford housing because the pricing has come down so
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much. that is the heartless market solution that is never popular especially in politics. megyn: you are making the argument, they have to help these people, the mean bankers. the bankers made them do it. >> predatory lending. >> you just had bank of america settle this to countrywide because they were peddling these mortgages to african-americans and his and is. megyn: not just african-americans and hispanics. i got one, too. when i sat there with the mortgage broark he said the market could change and you would wind up screwed. i'm one of the fortunate ones because i can pay it. do i want to pay a mortgage that's worth more than the house is worth? no. but no one will be bailing me
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out. >> i think fannie and freddie are part of the problem. they created a mortgage market that made it easier for the banks to do the securization. >> if the housing doesn't go up, there is no difference between renting and owning. megyn: what's left over in tarp, we use that to bail out the fannie and freddie mortgage owners. what happens if they don't. what is the other proposed use for that money? >> back to the taxpayer. megyn: is that real? >> it should be.
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megyn: that an ingting question. what else are we going to spend it on. coming up an atheist activist in texas gets attention after he threatens some sue over a christmas nativity scene. this man makes a serious lack of faith. on the dmoact today's "kelly's court." right after the break melissa francis is a number one fan of "kelly's court." this guy left his family for his 18-year-old former student. but after she learned she wasn't his first teacher's pet he got a hard lesson in love potentially from behind bars. "kelly's court" on where this case goes. >> it's my contention all along that this predatory behavior didn't just start. ♪
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megyn: "kelly's court" is back in session. a high school teacher leaves his family for a former 18-year-old student shown here. both insist their relationship began once she was of legal age. she they say it didn't turn sexual until she hit the age of majority. but after learning she may not have been his first school girl crush, she says her public relationship is over as her form teach is arrested on other serious charges. >> i lost everything from this guy. i lost my senior year. i gave up my friends. for him to not even have enough respect to tell me the truth. megyn: does this change the possibility of criminal charges against him? what about a civil lawsuit? joining me now, cohost of "the
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five." kimberly guilfoyle and former defense attorney mark eiglarsh. we played the clip of her mom saying he's a pervert and she has been want to go go after him but the daughter has been in the way. saying it was consensual. nothing happened until i turned 18. does this change that? >> now you will have someone cooperative in the criminal procedure. and they could bring additional charges. you also have someone who will have a case against him pending which strengthens things from a prosecutor's perspective. if she says we had sexual activity before i turned 18, then he could be looking at a number of sexual charges against him for crimes committed against a minor. she could change her story and say it's a credibility issue. but obviously she sees the light. we thought this guy had other
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cases and it seems like someone has come forward. megyn: so far she is saying no i still stick to my story that the relationship didn't turn sexual until i was 18. but sometimes things change when you get placed under oath and in a court of laugh and when the prosecutor plays sound bites that significant was interested in not just you but other young women while he dated you at or around the time he dated you including this admission from the girl we are talking about now about what he told her about the girl with whom he's now charged with having a relationship. >> he told me that he met her online and she hung out with her friend. an went to her house and she came out of the bathroom naked. megyn: mark? >> she will have credibility issues if she changed her mind. over and over again in interview
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after interview, this was consensual. then all of a sudden she learns about some other female, now she is a bit scorn. i'm not suggesting that would change her tune but it would certainly be ripe for cross-examination and i think that's why she won't change her tune. megyn: can they build a circumstantial case? can they do a circumstantial case against him based on his untruthfulness? there is a sound bite where he was asked weeks ago about whether there was anybody else. >> he said not was just her. megyn: stand by, watch it. >> had you had relationships with other students? >> never, i'm confident in 15 years is there not a single student that can come forward and say this happened.
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megyn: technically she wasn't a student. >> they will be able to build a case against him by the electronic records they subpoenaed. text messages, computer. if she has it then you might be hearing a completely different story. a jury is going to be forgiving. they are not going to think she is a distrustful dirty liar because she was duped by another person that clearly looks like he has tendencies to molest children. megyn: on the count he's facing, one count of oral copulation with a minor. what is he facing on that? >> up to 10 years. there is no civil case because the plaintiff has to prove the touching was without her consents. megyn: the case he is charged on he posted bail. we'll be right back. thank you.
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megyn: an atheist has a change of heart. you might remember pastor green who threatened to sue henderson county, texas unless they took the manger scene down. >> reporter: patrick green was an atheist activist. he was furious over that nativity scene in athens, texas. the only reason he pulled out of the lawsuit was because he came up with a rare eye disease that could leave him blind. a christian group came together to help him and his wife buy
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groceries. because of their kindness he decided to leave atheism behind and become a christian and he decided to enter the ministry. he says his whole life he had lingering wonders about why animals are so much different than humans. he believes evolution cannot fully answer that question, but he believes god can. he's amazed that the people who should have been angry at him for his threatened late whether ones who came to his aid when he needed them. kind of an easter monday story. it was a good friday story and we told it today. megyn: we had a lot of breaking news friday. taking your thoughts on it. follow me at twitter sat megyn kelly. you're selection is underway in the trial of a man accused of killing three members of jennifer hudson's family.
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>>megyn: the first family celebrating easter with children from across the country hosting the easter egg roll. the largest for the public on the white house grounds. 30,000 people are expected to attend. that's stressful. stressful. stressful. child running around, with 30,000 children. let's go. let's play, let's move encouraging physical activity part of the first lady's initiative few fight childhood obesity. we had one of these easter egg hunts yesterday with my son and daughter, and my son looked for him and he had no idea i was picking up the eggs in the basket and rehiding them he already it. we could still be doing it try no thank you for were watching everyone, i am megyn. >>shepard: thank you, megyn, that does sound

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